Credit Score Tips to Increase Buying Power
We all know the importance of a strong credit history but many haven't the foggiest idea of how to work their credit to make it look as good as possible.
When getting a home mortgage you will be evaluated primarily by the Fair Isaac credit scoring system. This is a proprietary credit scoring system out of which comes scores associated with your history.
The reality is most people don't have the foggiest idea of the makings of their score. Most people think credit scoring is mainly about payment history.
This is only partially true. Your credit score is generated from numerous factors in combination. Thereafter, no one knows except the developer and those in the real know.
Here is what we do know. You obviously need to keep a clean payment history. Remember, companies report you late only when you've exceeded thirty days past your due date.
When you have lots of available credit which is relatively unused it looks better on your scores. It basically means you have discipline and cushion to fall back on if in need.
You definitely don't want to be maxing your cards out. That is bad juju, even if you pay them on time.
Credit scoring likes some open credit. So, if you are credit averse and don't have hardly any trade lines open, go get two or three.
Remember, credit scoring is somewhat sensible in what it factors. That being the case do not run out and get 10 credit cards. This could be seen as trouble by the scoring system.
You want to use your new credit cards every single month and every month you want to pay off the balance. You'll be shocked at how much your scores rise in a very short time.
Credit scores frown heavily on recent foul ups. The more recent the foul up the more the scoring system believes you to be in the middle of a financial storm. Be very careful if you are looking to use your credit soon.
Most of credit scoring makes sense. Use logic when developing your credit picture and you'll be just fine.
When getting a home mortgage you will be evaluated primarily by the Fair Isaac credit scoring system. This is a proprietary credit scoring system out of which comes scores associated with your history.
The reality is most people don't have the foggiest idea of the makings of their score. Most people think credit scoring is mainly about payment history.
This is only partially true. Your credit score is generated from numerous factors in combination. Thereafter, no one knows except the developer and those in the real know.
Here is what we do know. You obviously need to keep a clean payment history. Remember, companies report you late only when you've exceeded thirty days past your due date.
When you have lots of available credit which is relatively unused it looks better on your scores. It basically means you have discipline and cushion to fall back on if in need.
You definitely don't want to be maxing your cards out. That is bad juju, even if you pay them on time.
Credit scoring likes some open credit. So, if you are credit averse and don't have hardly any trade lines open, go get two or three.
Remember, credit scoring is somewhat sensible in what it factors. That being the case do not run out and get 10 credit cards. This could be seen as trouble by the scoring system.
You want to use your new credit cards every single month and every month you want to pay off the balance. You'll be shocked at how much your scores rise in a very short time.
Credit scores frown heavily on recent foul ups. The more recent the foul up the more the scoring system believes you to be in the middle of a financial storm. Be very careful if you are looking to use your credit soon.
Most of credit scoring makes sense. Use logic when developing your credit picture and you'll be just fine.
posted by Debt Consolidation Loan at
5:08 PM
0 Comments:
Post a Comment
Subscribe to Post Comments [Atom]
<< Home